SMEs, employees welcome Jobs Credit scheme

SMEs, employees welcome Jobs Credit scheme

By Cheryl Lim,

SINGAPORE: Small and medium-sized enterprises (SMEs) say the Budget 2009 is a business-friendly one.

And employees have welcomed it too, saying it is a worker-friendly one as well.

At interior furnishings company Goodrich, wages make up almost 60 per cent of total operational costs.

The company will go ahead with a planned 15 per cent wage cut from next month, and with the newly-announced Jobs Credit scheme, it expects to save about S$400,000 annually.

Chairman of Goodrich Global, Chan C B, said: “We are not going to do any retrenchment, the S$400,000 savings will be a good buffer for us if things get worse.”

Unlike Goodrich, environmental packaging company Greenpac has no plans to introduce cost-cutting measures yet, despite a 20 per cent slowdown in business over the last few months.

But with the reduced corporate and property tax, loan initiatives and Jobs Credit scheme, Greenpac will be able to shave up to 20 per cent off its total operational costs.

Managing director of Greenpac, Susan Chong, said: “This unusual Budget at this unusual time has been very pro-business. And we’re very happy especially with the Jobs Credit scheme because it really helps the company to save some costs.”

As being environmentally-friendly helps save costs, Greenpac hopes more incentives will be given for companies to go green.

SMEs say Thursday’s Budget announcement will give them some much-needed relief, especially during these tough times. They say they are confident the government is taking proactive measures to help.

Employees too have welcomed the move, saying it goes some way to ensuring job security.

One employee said: “At the end of the day, you do not want to see your colleague leave.”

Another said: “I’m glad that the government did help us, so at least we can hold on to our rice bowls longer.”

Both workers and SMEs say although the Budget has been generous, they hope the government will continue to step in if the situation gets worse.

- CNA/yt

Source : Channel NewsAsia - 24 Jan 2009

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